According to statistics from the Indian Construction Equipment Manufacturers Association (ICEMA), the sales of construction machinery and equipment in India increased by 18% year-on-year in the first quarter of the 2023-2024 fiscal year, reaching 27244 units; In the second quarter of this fiscal year, the sales of equipment increased by 31% year-on-year, reaching 30078 units, of which earthwork machinery increased by 23% and road machinery increased by 65%. The growth of the market is mainly driven by infrastructure.
Dimitrov Krishnan, head of Volvo Construction Equipment India, stated that since April 2023, equipment sales have increased by nearly 20% year-on-year, and year-end sales may reach 125000 to 130000 units, exceeding the peak level of 107000 units in the 2022 fiscal year. Dimitrov Krishnan predicts that the construction machinery market in India will grow 2-3 times by 2030, and with the government's push for sustainable solutions related to electrification/alternative fuels, India will be at the forefront.
The rural market in India has a huge demand for equipment. Deepak Shetty, Managing Director of JCB India, revealed that equipment sales in rural areas of India are high. It is reported that over 65% of JCB India's equipment is sold to rural areas, with 65% to 70% of the equipment sold to new customers. Deepak Shetty expects double-digit growth in sales in the Indian market in the fiscal year 2024.
Liebherr stated that the company's performance in the Indian market for the fiscal year 2023 may be at its highest level. In the next three to five years, we plan to double our business, introduce more diversified 名媛直播, and make large-scale investments in India to increase production capacity.
Hitachi Construction expects its excavator sales in the Indian market to increase by over 10% and revenue to increase by nearly 15% in the fiscal year 2023. The growth of the small excavator market is an important trend driven by demand from government projects such as agriculture, solid waste treatment, and Har Ghar Jal Yojana.
Industry analysis in India suggests that for the fiscal year 2022-2023, the sales of construction machinery in India will exceed 100000 units for the first time, and it is expected to grow by 12% to 15% in the fiscal year 2023-2024, with total sales exceeding 6 billion US dollars.
The relevant person in charge of Sany India Company has stated that with the demand for infrastructure construction reaching a new high, investment in the Indian construction machinery industry may increase by over 4.5 billion US dollars in the next 5-7 years. The Sany Plan aims to increase India's localization level to 75% in the next 3-5 years.
Builders have long been optimistic about the development and growth of India's construction industry. They believe that India is in the initial stage of the housing growth cycle, and the housing market may continue to perform well in the next 3-4 years. According to data from consulting firms, the number of newly launched residential projects has also increased by 24%, which will further drive an increase in infrastructure demand.
The rental market has received much attention. Data shows that in the past five or six years, the rental penetration rate of construction machinery in India has increased several times, currently approaching over 40%, compared to only 5% to 10% six years ago.
The mining industry is another driving force for growth, requiring a large amount of equipment support and solutions. On November 13, 2023, the Federal Ministry of Coal of India announced plans to achieve a total coal production of 1.404 billion tons in India by 2027 and further increase to 1.577 billion tons by 2030. Nearly 100 key mineral blocks will be auctioned off before February 2024. It is understood that by the fiscal year 2028/2029, Coal India Limited plans to invest $3 billion to expand infrastructure and increase production capacity.
According to estimates from the Indian Ministry of Electricity, with India's focus on energy transformation to reduce carbon emissions, investment in renewable energy projects will increase by over 83% by 2024, requiring approximately $16.5 billion in investment.
In the fiscal year 2023, India increased infrastructure investment to 10 trillion rupees, a year-on-year increase of 33%, accounting for 3.3% of the total GDP. Credit rating agency CRISIL has stated that India plans to invest 143 trillion rupees in infrastructure construction by 2030.
According to the article "India, the" Next Leader "in the Global Construction Machinery Manufacturing Industry?" on the First Construction Machinery Network, the Indian government's "2022 Universal Housing" plan is expected to bring $1.3 trillion in investment to the housing sector by 2025. The significant investment in the real estate industry will drive higher demand for renovation and new construction activities in the Indian construction machinery market.
According to data from market research firm Mordor Intelligence, the market value of the Indian construction machinery market was 7.3 billion US dollars in 2023, and it is expected to reach 10.9 billion US dollars by 2028. The compound annual growth rate for the forecast period (2023-2028) is 8.3%
Is it opportunity or foam? Can India take the lead in the world construction machinery market? We'll wait and see.
